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  4. Estimating Market Access Effects With Regional Wages: An Application Of The Gravity Equation And The Structural Wage Equation In A Non-Linear Dynamic Specification

Estimating Market Access Effects With Regional Wages: An Application Of The Gravity Equation And The Structural Wage Equation In A Non-Linear Dynamic Specification

File(s)
jcp324.pdf (747.65 KB)
Permanent Link(s)
https://hdl.handle.net/1813/40644
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Cornell Theses and Dissertations
Author
Plambeck, Johannes
Abstract

This thesis analyzes the political-economic determinants of market access - an important theoretical indicator of spatial inequality - in the Asia-Pacific region. Political-economic controls such as dyadic hostility and sanction costs are specified in a gravity model of trade that is applied to 13 countries with respect to their neighboring trade partners. The effects that are yielded from the gravity model are used to construct a set of "market access" indices. The theoretical association between market access and wages is tested using a full information maximum likelihood estimation and is found to be nearly one to one across all but two countries under investigation. The inclusion of dyadic political-economic variables thus improves the explanatory power of market access in determining regional wages. The analytic framework presented thus offers practitioners a robust econometric and partial equilibrium method to measure the effects of bilateral economic policies on national income differentials.

Date Issued
2015-05-24
Keywords
Market Potential
•
Economic Sanctions
•
New Economic Geography
Committee Chair
Donaghy,Kieran Patrick
Committee Member
Mansury,Yuri Surtadi
Degree Discipline
Regional Science
Degree Name
M.S., Regional Science
Degree Level
Master of Science
Type
dissertation or thesis

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